Boardwave and McKinsey & Company release analysis that identifies five priority interventions to unlock growth opportunities to scale and retain global software companies

LONDON, June 1, 2025 /PRNewswire/ -- Europe's software sector has a 'once-in-a-generation' opportunity to lead the next wave of global technology innovation - if it can overcome a persistent scale-up barrier.

The joint report by Boardwave, the European software leadership network, and McKinsey & Company is to be released today. Titled Europe's Moonshot Moment: Scaling the European Tech Sector, the report - based on 100+ interviews and analysis of some of Europe's most senior technology leaders - calls for a coordinated push to transform the continent's strength in talent, innovation, and capital into enduring, global outcomes.

The new research argues that conditions are aligning to create a breakout moment for the region's tech ecosystem.

A Scaling Challenge but the Window Is Open

The report finds that while Europe has matured as a tech hub with over 280 software companies generating more than €100 million in annual recurring revenue (ARR), too many still stall at the €30 million ARR mark. This bottleneck prevents promising companies from becoming global players, but this isn't due to a lack of the right ingredients.

Europe has world-class talent, rising early-stage investment, and growing institutional support. What's needed is mobilisation: a collective effort across founders, investors, corporates, and governments to convert momentum into scale.

From Fragmented Success to Continental Scale

The report identifies five priority interventions to unlock growth:

Expand late-stage 'scale-up' funding to help companies leap from €30M to €100M ARR
Accelerate repeat founder ecosystems, turning exits into new ventures
Boost cross-border mobility of go-to-market talent to scale sales and marketing
Ignite enterprise demand for European software through procurement and incentives
Strengthen public-private partnerships to de-risk innovation in strategic tech sectors

"We're witnessing a real belief in the UK and Europe's ability to build the next generation of global champions. European tech stands at a pivotal moment, armed with talent, capital, and ambition. There's a sense of optimism and urgency across the ecosystem right now and it has everything it needs to succeed, but what's missing is coordinated scale," said Phill Robinson, CEO and co-founder of Boardwave.

"Europe's technology landscape is shifting faster than at any point in the last two decades. The analysis in this report shows Europe already holds the essentials to create the world's next generation of software champions: deep talent pools, vibrant founder networks, and a rapidly maturing capital base," commented Ruben Schaubroeck, Senior Partner from McKinsey & Company.

"Tectonic shifts - such as the rise of generative AI or the re-shoring of strategic supply chains - are opening new corridors of opportunity in Europe. The report offers founders, investors, and boards a common map and advice to harness today's tailwinds with urgency and turn Europe's strength into a wave of €1-billion-plus success stories."

Europe's Momentum Is Building

Several forces are converging to create what the report calls a "moonshot moment":
- New technologies like generative AI are lowering barriers to global scale
- Policy shifts are opening cross-border pathways, like the proposed "28th regime"
- European success stories, such as Mistral, Celonis and Spotify, are inspiring the next wave
- Public and private initiatives are expanding capital access and entrepreneurship support

One of the most powerful enablers of scale, the report finds, is connection: between founders, talent, capital, and institutions.

"We need to act as one innovation ecosystem, not 27 different ones," said Robinson.
"That's what makes this Europe's moonshot moment. If we connect and act now, we can lead. And not just in Europe, but globally."

About Boardwave

Boardwave is Europe's leading network for ambitious software leaders. With over 2,200 members - founders, CEOs, NEDs, and Chairs - we provide the connections, insights, and support to help leaders scale smarter and faster. Our free membership unlocks tailored events, expert-led content, and direct access to top investors, advisors, and industry partners.
www.boardwave.org

About McKinsey & Company

McKinsey is a global management consulting firm committed to helping organisations accelerate sustainable and inclusive growth. They work with clients across the private, public, and social sectors to solve complex problems and create positive change for all their stakeholders. They combine bold strategies and transformative technologies to help organisations innovate more sustainably, achieve lasting gains in performance, and build workforces that will thrive for this generation and the next.
www.mckinsey.com

This research is independent and reflects the views of the authors. It was not commissioned by any business, government or institution.

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